Personal and business bank account providers in the UK have launched a glut of ISA savings products in the run-up to the new tax year, industry experts recently reported.
With April 5 looming ever closer on the horizon, banks and building societies such as Virgin Money, Marks & Spencer Money, Manchester Building Society, First Direct, and Nationwide BS subsidiary Cheshire Building Society have all announced new ISAs in a bid to wring the last few savers out who have not yet deposited their full £5,340 annual allowance. The highest interest rate is being paid by Cheshire, with its 3.06 per cent variable Direct Cash ISA, though it does not permit savers to transfer balances from existing ISAs and loses 2.06 percentage points off of its rate in September of 2013.
If you’re one of those savers who has waited, wagering that last-minute deals will be more lucrative, both Virgin Money and Marks & Spencer sacrifice high rates of return for more accessibility. Virgin’s Easy Access Cash ISA boasts a 2.85 per cent return, while Marks & Spencer is offering 3 per cent, and savers can transfer existing balances in to either offering.
There are other new ISA offerings currently available ahead of the April 5 deadline with high rates of return, such as the 3.05 per cent variable rate Internet Access ISA from the AA and the 3.05 per cent Bonus ISA from Newcastle Building Society, which must be managed in branch. ING Direct is also offering a new 3 per cent Cash ISA as well, giving savers many choices when it comes to places to put their hard-earned cash for another year before receiving an additional allowance on 6 April.